Investing.com-- Boeing Co (NYSE:BA) workers voted in favor of the planemaker’s latest contract offer on Monday (NASDAQ:MNDY) evening, ending a long-running strike that had severely disrupted production for nearly two months.
Local media reports from Seattle said 59% of striking workers voted in favor of a new contract, which will entail wage hikes of 38% over the next four years. But the contract still did not include the return of a pension plan.
Monday's vote was the third time striking workers voted on a contract offer from Boeing, having rejected two prior offers. Monday's decision brings an end to the strike, which involved about 33,000 West Coast factory workers.
The strike had begun on September 13 and had halted most of Boeing’s plane production while also costing the firm about $100 million a day in lost revenue.
The strike was Boeing’s worst in 16 years, and came as an additional headwind for the plane maker, which was already grappling with heightened government scrutiny after a plane door blew off an Alaskan Airlines flight earlier this year.
The company’s Starliner spacecraft also malfunctioned during its maiden voyage and stranded two astronauts aboard the International Space Station earlier this year.
The strike saw Boeing hemorrhaging cash, which saw the planemaker raising about $24 billion in capital last week to bolster its cash flow and maintain its credit rating.
But even with the strike now resolved, the company is still expected to take some time before returning production to full capacity. Workers in its West Coast factories are expected to return this Wednesday.
Reacting to the news, analysts at TD Cowen said the hike itself, while large, is "likely less important than (1) the pace at which BA can get production and productivity on track and (2) peripheral impact of the agreement on upcoming supplier labor negotiations."
Meanwhile, Jefferies said that with the return to work as soon as "November 6th and by November 12th, the focus is on production following a $2BB FCF burn in Q3 with adverse timing expected to deepen Q4 FCF burn (~$4.2BB)."